PROFIT AND LOSS

IMPORTANT FACTS
Notations used in profit and loss:
S.P. Selling price
C.P. Cost price
M.P. Marked Price

FORMULAE

1. Profit or Gain = S.P. C.P. [ profit is made only when S.P. is greater then C.P.]
2. Loss = C.P S.P. [ Loss id made only when C.P. is greater than S.P.]
3. Profit % = (Actual Profit C.P. ) 100%
4. Loss % = (Actual loss C.P. ) 100%
5. C.P. = (S.P. 100 ) (100 + profit%) [If profit is made]
6. C.P. = (S.P. 100 ) (100 profit%) [If loss is made]
7. S.P. = (100 + profit%) C.P 100 [If profit is made]
8. S.P. = (100 loss%) C.P 100 [If loss is made]
9. Actual Discount = M.P. S.P.
10. Discount% = (Actual Discount M.P.) 100%
11. S.P. = M.P. Actual Discount
12. S.P. = M.P. Discount% of M.P.
13. S.P. = (100 Discount%) of M.P

Ex.1.

A man buys an article for Rs. 27.50 and sells it for Rs. 28.60. Find his gain percent.

Sol.

C.P. = Rs. 27.50, S.P. = Rs. 28.60.

So, gain = Rs. (28.60 27.50) = Rs. 1.10.
1.10

Gain% =

x 100 % = 4%
27.50

Ex.2.

If a radio is purchased for Rs. 490 and sold for Rs. 465.50, find the loss percent .

Sol.

C.P. = Rs. 490, S.P. = Rs. 465.50

Loss = Rs. (490 465.50) = Rs. 24.50
24.50

Loss % =

x 100 % = 5%
490

Ex.3.

A man buys a toy for Rs 25 and sells it for Rs 30. Find his gain percent .

Sol.

% Gain =

Gain

5
x 100 =

C.P.

x 100 = 20 %
25

Ex.4.

A boys buys a pen for Rs 25 and sells it for Rs 20. Find his loss percent .

Sol.

% Loss =

Loss

5
x 100 =

CP

x 100 = 20%
25

Ex.5.

If the cost price is 96% of the selling price , then what is the profit percent ?

Sol.

Let S.P. = Rs. 100. Then , C.P. = Rs. 96; Profit = Rs. 4.

Profit % =

25
x 100

% =

96

% = 4.17 %
6

Ex.6.

The C.P. of 21 articles is equal to S.P. of 18 articles .Find the gain or loss percent.

Sol.

Let C.P. of each article be Rs. 1.

Then, C.P. of 18 articles = Rs. 18, S.P. of 18 articles = Rs. 21.
3

Gain % =

2
x 100 % = 16

18

%
3

Ex.7.

A man purchases 8 pens for Rs. 9 and sells 9 pens for rupees 8. How much profit or loss does he make?

Sol.

Quicker Maths:

Purchases

8 pens for Rs 9

Sells

9 pens for Rs 8
8x89x9

- 1700

% profit or loss =

x 100 =
9x9

= - 20.98%
81

Since the sign is ve, there is a loss of 20.98%.

Ex.8.
A dishonest dealer professes to sell his goods at cost price, but he uses a weight of 950 gm for the kg weight . Find
his gain percent.
Sol.

Direct formula:
Error
% gain =

x 100
True value - Error

50
=

x 100 = 5.26 %
950

Ex.9.

A vendor bought bananas at 6 for Rs. 10 and sold them at 4 for Rs. 6 .Find his gain or loss percent .

Sol.

Suppose , number of bananas bought = L.C.M. of 6 and 4 = 12.

C.P. = Rs.

10

6
x 12

= Rs. 20;

S.P.

= Rs.

x 12 = Rs. 18.
4

2
:

Loss % =

x 100 %

= 10 %

20

Ex.10.

A man bought toffees at 3 for a rupees. How many for a rupee must he sell to gain 50 %?

Sol.

C.P. of 3 toffees = Rs. 1; S.P. of 3 toffees = 150% of Rs.

3
1=

.
2

3
For Rs.

2
, toffees sold = 3.

For Rs. 1, toffees sold =

3x

= 2.
3

Ex.11. Alfred buys an old scooter for Rs. 4700 and spends Rs. 800 on its repairs. If he sells the scooter for Rs. 5800, his gain
percent is:

Sol.

Cost Price (C.P.) = Rs. (4700 + 800) = Rs. 5500.

Selling Price (S.P.) = Rs. 5800.

Gain = (S.P.) - (C.P.) = Rs.(5800 - 5500) = Rs. 300.

300
Gain % =

5
x 100 % = 5

5500

%
11

Ex.12.

A vendor bought toffees at 6 for a rupee. How many for a rupee must he sell to gain 20%?

Sol.

C.P. of 6 toffees = Re. 1.

6
S.P. of 6 toffees = 120% of Re. 1 = Rs.
5
6
For Rs.

toffees sold = 6.
5,
5

For Rs.1,toffees sold = 6 x

= 5.
6

Ex.13. The percentage profit earned by selling an article for Rs. 1920 is equal to the percentage loss incurred by selling the
same article for Rs. 1280. At what price should the article be sold to make 25% profit?
Sol.

Let C.P. be Rs. x.

1920 x
Then,

x - 1280
X 100 =

=>

X 100
x

1920 x = x 1280

=>

2x = 3200

=>

= 1600
125

Required S.P. = 125 % of Rs. 1600 = Rs.

x 1600 = 2000.
100

Ex.14.

Some articles were bought at 6 articles for Rs. 5 and sold at 5 articles for Rs. 6. Gain percent is:

Sol.

Suppose, number of articles bought = L.C.M. of 6 and 5 = 30.

5
C.P. of 30 articles = Rs.

x 30
6

= Rs. 25.

6
S.P. of 30 articles =

Rs.

x 30 = Rs. 36.
5

11
Gain % =

x 100 % = 44 %
25

Ex.15. A dishonest dealer professes to sell his goods at cost piece but uses a weight of 960 gms for a kg. weight. Find his
gain percent.
Error
Sol.

40

Gain % =

x 100

(True Value) - (Error)

1
x 100

% = 4

960

%.
6

Ex.16. If the manufacture gains 10 % , the wholesale dealer 15 % and the retailer 25 % , then find the cost of production of
a table , the retail price of which is Rs. 1265?

Sol.

Let the cost of production of the table be Rs. x.

Then, 125% of 115% of 110% of x = 1265
125

=>

115
x

100

110
x

100

253
x

1265

=>

100

1265 x 160
X

= 1265 = > x

160

Ex.17.

By selling goods for Rs.352.88, I lost 12 % ; find the cost price .

Sol.

C.P. should be more than S.P; so we multiply SP by

100

= Rs. 800.
253

100
=

100 12

(a fraction which is more than 1)

88
100

C.P. = 352.88 x

= Rs. 401.
88

Ex.18. A sells a good to B at a profit of 20 % and B sells it to C at a profit of 25 % . If C pays Rs 225 for it , what was the cost
price for A?
Sol.
During both the transactions there are profits. So our calculating figures would be 120, 125and 100. As cost price is
certainly less than Cs selling price.
100
:

Required price = 225 x

100
x

120

= Rs 150
125

Ex.19. A trade man sold an article at a loss of 20% .If the selling price had been increased by Rs. 100, there would have
been a gain of 5% .What was the cost price of the article?

Sol.

Let C.P. be Rs. x. Then, (105% of x) - (80% of x) = 100 or 25% of x = 100

x

= 100 or x

= 400.

4
So, C.P. = Rs. 400.

Ex.20. The price of a jewel, passing through three hands, rises on the whole by 65%. If the first and the second sellers
earned 20% and 25% profit respectively , find the percentage profit earned by the third seller.
Sol.

Let, the original price of the jewel be Rs. P and let the profit earned by the third seller be x%.
Then, (100 + x)% of 125% of 120% of P = 165% of P
(100 + x)

=>

125

120

x
100

x
100

165
xP

100

xP
100

165 x 100 x 100

=>

(100 + x) =

= 110 = >

x = 10%

125 x 120

Ex.21.

Find the single discount equivalent to a series discount of 20 % , 10% and 5% .

Sol.

Let marked price be Rs. 100.

Then, Net S.P. = 95% of 90% of 80% of Rs. 100
95
= Rs.

90
x

100
:

Required discount = (100 - 68.40) % =

80
x

100

x 100

= Rs. 68.40.

100

31.6%.

Ex.22. An uneducated retailer marks all his goods at 50% above the cost price and thinking that he will still make 25%
profit , offers a discount of 25% on the marked price . What is his actual profit on the sales?
Sol.

Let, C.P. = Rs. 100. Then, marked price = Rs. 150.

S.P. = 75% of Rs.150. = Rs. 112.50.

Gain% = 12.50%.

Ex.23. At what percentage above the C.P. must an article be marked so as to gain 33% after allowing a customer a
discount of 5%?
Sol.

Let C.P. = Rs. 100.

Then, S.P. = Rs. 133.

Let marked price be Rs. x.

95
Then, 95% of x = 133

100
X = 133 = > X =

=>

133 x

100
:

= 140.
95

Marked price = 40% above C.P.

Ex.24. A machine is sold for Rs 5060 at a gain of 10% . What would have been the gain or loss percent if it had been sold
for Rs 4370?
Sol.

Calculating figures are 110 and 100.

C.P. = 5060 x

100
= Rs. 4600.
110
nd

230 x 100
S.P. = Rs 4370

loss%

= 5%
4600

Ex.25.

I sold a book at a profit of 12% . Had I sold it for Rs. 18 more, 18% would have been gained . Find the cost price.

Sol.

Here,
118% of cost - 112% of cost = Rs. 18

6% of cost = Rs. 18

cost =

18 x 100
= Rs. 300
6

Ex.26. The percentage profit earned by selling an article for Rs. 1920 is equal to the percentage loss incurred by selling the
same article for Rs. 1280. At what price should the article be sold to make 25% profit?
Sol.

Let C.P. be Rs. x.

1920 x
Then,

x - 1280
X 100 =

X 100
x

1920 x = x - 1280
2x = 3200
x = 1600
125
:

Required S.P. = 125% of Rs. 1600 = Rs.

x 1600

= Rs. 2000.

100

Ex.27.

Some articles were bought at 6 articles for Rs. 5 and sold at 5 articles for Rs. 6. Gain percent is:

Sol.

Suppose, number of articles bought = L.C.M. of 6 and 5 = 30.

5
C.P. of 30 articles = Rs.

x 30

= Rs. 25.

6
S.P. of 30 articles = Rs.

x 30

= Rs. 36.

5
11
:

Gain % =

x 100

% = 44%.

25

Ex.28. A whole seller sells 30 pens for the price of 27 pens to a retailer. The retailer sells the pens at the marked price. Find
the percent profit of the retailer.
100
Sol.

% profit =

1
= 11

%
9

Ex.29. A person bought two watches for Rs 480. He sold one at a loss of 15% and the other at a gain of 19% and he found
that each watch was sold at the same price. Find the cost prices of the two watches.
Sol.

We are not going to discuss the detailed method. Only some hint regarding it is enough for you. If the C.P. of the first
watch is x,
100 - 15
Then x

100 + 19
= (480 x )

100

100

Now solve for x and get the two prices .

480 x (100 + % profit)
Directing formula : C.P. of watch sold at loss =
(100 15) + (100 + 19)

480 x 119
=

= Rs. 280
204

C.P. of watch sold at gain = 480 280

= 200.

Ex.30. A man purchases a certain number of mangoes at 3 per rupee and the same number at 4 per rupee . He mixes them
together and sells them at 3 per rupee . What is his gain or loss percent?

Sol.

By the theorem:

2x3x4
Profit and loss percent =

- 1 x 100
3(3 + 4)

24
=

100
-1

x 100 =

21

7
2

Since the sign is +ve , there is a gain of 14

%
7

2
= 14

%
7